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leva [86]
3 years ago
11

The Nixon Corporation’s common stock has a beta of 1.7. If the risk-free rate is 4.8 percent and the expected return on the mark

et is 10 percent, what is the company’s cost of equity capital?
Business
1 answer:
Archy [21]3 years ago
6 0

Answer:

13.64%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.8% + 1.7 × (10% - 4.8%)

= 4.8% + 1.7 × 5.2%

= 4.8% + 8.84%

= 13.64%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium

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3 0
3 years ago
Anstead Co. is experiencing a decrease in sales and operating income for the fiscal year ending October 31, 2014. Ryan Frazier,
Sergeu [11.5K]

Answer:

Yes, Ryan Frazier is behaving in a professional manner.

Explanation:

Yes, Ryan Frazier is behaving in a ethical and professional manner because the company is following FOB point method when shipping goods it customers due to the fact that Ryan Frazier, controller of Anstead Co., has suggested that all orders received before the end of the fiscal year be shipped by midnight as the company follows merchandise FOB shipping points the company should go ahead and record the sales in the current year Octocber 31st due to the fact that FOB shipping point means that the buyer pays all cost incurred for the delivery of the goods once the goods has left the suppliers warehouse which makes the buyer to becomes the owner of the goods in transit when the goods are been shipped by the seller.

6 0
3 years ago
Best tips for the FAA checkride?
dedylja [7]

Answer:

1.) Prepare very well

2.) Do not entertain fear

3.) Get your paper work ready

4.) Know the route

5.) Know the basics in and out

Explanation:

Checkride is a practical flight test which student pilots after months of flight training and ground school, must pass after which they have their new pilot certificate. 

1.) Prepare the PTS (practical test standards) thoroughly, the minimum altitudes for each flight maneuver in particular. Before you appear for your FAA checkride.

2.) There is no use to over study new information at the last minute. Sleep early and wake up relaxed and refreshed and eat healthy breakfast. 

3.) Make sure to go through your 8710 airman certificate application and then make your flight instructor to do the same. Check your airport directory and sectional charts and make sure they are current

4.) Make sure to understand the route for your flight plan that the examiner asked you to plot and also the route to an alternate airport.

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4 0
3 years ago
A firm has $848 in inventory, $1,740 in fixed assets, $668 in accounts receivable, $416 in net working capital, and $231 in cash
soldier1979 [14.2K]

Answer:

$1,331

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With regards to the above information, we need to calculate first current assets.

Current assets = $848 in inventory + $668 in accounts receivable + $231 in cash

Current assets = $1,747

Therefore,

Current liabilities = Current assets - Net working capital

Current liabilities = $1,747 - $416

Current liabilities = $1,331

8 0
3 years ago
The economy of the United States can be best described as
Aliun [14]

Answer:

A a mixed economy.

Explanation:

The asnswer is a mixed economy

6 0
3 years ago
Read 2 more answers
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